Wut?Profit.
LMAO
If you're going to respond at least know what you're talking about.
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Wut?Profit.
Oil at $79 as I type.
So why is gas priced the same as when it was at $129?
You’re doing such a great job at these rebuttals.Nope.
This is just plain not true.
Not primary driver, but any business should want to make a profit above and beyond projected costs.Nope.
This is just plain not true.
So, are you saying that prices at consumer level go up faster than they come down and the rate of change is where the additional profit comes in for the businesses (who may need to make up for being caught off guard at the beginning?).Lastly, though skyrocketing commodities prices have temporarily run their course and supply chain issues are being resolved, inflation has affected the price of goods and services. And even at this point pricing has not completely reflected the resolving aforementioned issues.
Ok, in that case I agree.Not primary driver, but any business should want to make a profit above and beyond projected costs.
Say, 10% net profit is the goal and at present, the business is making 15% in part due to skillful business practices and because that is what the market will bear.
A business could drop the sale price to garner more sales (market share), but a more conservative approach is to let the current pricing model ride.
Lots of way to run businesses, but any not making profit don't last long.
So, are you saying that prices at consumer level go up faster than they come down and the rate of change is where the additional profit comes in for the businesses (who may need to make up for being caught off guard at the beginning?).
If so, I agree and do not see where my earlier statements are incorrect.
Gas is about 13% lower today than in March. Oil is 39% lower than in March.@StuAzole @hammies @Mr Doof
First, gasoline is not priced the same as it was oil was @ $120+ b/b, it is over a dollar cheaper.
Second, the crack spread is huge.
Third, refining capacity has dropped to a nearly 10 year low. (Expect this downward trend to continue and invest accordingly - i.e. go long oil)
Lastly, though skyrocketing commodities prices have temporarily run their course and supply chain issues are being resolved, inflation has affected the price of goods and services. And even at this point pricing has not completely reflected the resolving aforementioned issues.
I understand the contract issue. That's a small part of the issue.1 Gasoline is often purchased in advanced with contracts
2 These contracts essentially lock in the price you have to sell it at to make enough $ to buy next drop
3 Due to uncertainty of the future, sensible to have % over that number in case future price is higher
4 This logic goes up/down the supply chain.
5 What hammies said as well
Pretty much what I just watch happen up here in S. Ore coast. One station is holding out on the increase back up, for now.Gas at my local went up from $5.04 to $5.29 in the last week.
Crude went down from $85 to $79 a barrel in the last week.
Charging 5% more for your product while spending 7% less on your raw materials is how you MAGA!
Why do you think gas prices are going back up the last couple weeks?Oil at $79 as I type.
So why is gas priced the same as when it was at $129?
Oil is dropping bc demand is dropping and recession fears are leading to concerns of oversupply.Why do you think gas prices are going back up the last couple weeks?
oil/gas supplies are FAR from stable at this point, and the last 1-1/2 years.
RE agents, for obvious reasons, always think NOW is the time to buy...or sell if you are a seller. Can you imagine going to agent and saying "I'd like to sell my house," and them repying, "I wouldn't do that it I were you.?"recession-fearers are merely sidelined real estate buyers.
my RE agent buddy says NOW is the time to buy.
i think its ALWAYS the time to buy...
Costs of refining, distribution and taxes are fairly stable compared to the cost of crude.Oil is dropping bc demand is dropping and recession fears are leading to concerns of oversupply.
I keep telling you that the supply uncertainty is baked into the price of oil, not gas. Gas prices are determined by the cost of oil, cost of refining, distribution and taxes.
Which is why gas prices should be dropping. A 40% drop in oil should lead to more than a 13% drop in gas over the same period.Costs of refining, distribution and taxes are fairly stable compared to the cost of crude.
Refineries are operating at full capacities, and have been for years.Which is why gas prices should be dropping. A 40% drop in oil should lead to more than a 13% drop in gas over the same period.